Turnkey CBD Business in 2023 – How to Make a Profit
8 December 2020
In this blog post, we want to talk about the best approach to starting a turnkey CBD Business and the challenges you might face along the way. It is relatively easy to get started if you are willing to put some time and effort into this.
Throughout all the time we’ve spent developing turnkey CBD dropshipping websites, we’ve met many clients from this industry so we’ll try to outline the main issues they faced and the solutions to them along with the steps that are required to start selling CBD online.
Main steps to start a CBD Dropshipping Store:
1. Make sure that selling CBD is allowed in your country and state.
Multiple countries allow doing CBD business in their territory. First of all, before you do anything else, it is worth making sure that it is legal to sell CBD in your area and check the laws and regulations concerning it. As an example, some US states restrict selling CBD in general and some restrict certain kinds of CBD products.
2. Find a supplier for your CBD business.
A supplier would be an essential part of your business. They must be reliable, professional and fast to respond. We recommend searching the web and reaching out to multiple suppliers to understand their business terms, pricing, process and all other aspects. We recommend using multiple different suppliers for your turnkey CBD business. Do not keep all your eggs in one basket. This way you will be able to switch between them or display different products from a few different suppliers on your website.
3. Understand which categories and kinds of CBD products you want to sell.
There are a lot of products where CBD is used. We recommend doing some research to understand whether you want to sell many kinds of them or maybe concentrate on certain ones and build your cannabis store marketing strategy around them.
Here are the main types of products to consider: vape concentrates, edibles, CBD topicals, tinctures, CBD capsules. They are all used for different purposes and some of them can be used not only for people but for pets as well.
4. Choose the best CBD website platform.
There are multiple different website platforms (they are also called CMS) you can use for building your turnkey CBD business online. Among them are WordPress, Digital Octane, Shopify, and BigCommerce. All of them have their upsides and downsides.
We recommend using the ones that provide services specifically for the CBD business and don’t have additional fees or hidden charges. For this reason, we’ve built our solution which has been precisely developed for CBD dropshippers to sell CBD and cannabis products online and includes all the services and technical support you might require. It covers everything you might need to start online sales.
5. Register a payment processor account.
A payment processor is essential for you to be able to receive payments from your customers. When choosing a payment processor, check if it allows using it for selling CBD products. If they don’t have it displayed on their site in the FAQ section, reach out to the payment processor’s customer service and ask them.
At the moment, our clients use payment processor companies such as PayPal, AuthorizeNet and Square – these are the most popular ones. The same as with the suppliers, we recommend attaching several different payment providers to your turnkey CBD business. If something happens with one of them, you can immediately replace it with another.
6. Establish a marketing strategy.
Once your online CBD store is up and ready to receive payments, you need to attract clients. There are hundreds of ways to market an E-Commerce store and increase sales. Here are some of the ones our clients are using:
- Advertise products using ambassadors on instagram and elsewhere.
- Do advertisement using Google Adwords and other pay-per-click sources.
- Use Reddit – threads such as “CBD”, “Hemp” and others.
- Advertise products physically. Start locally in your city and then expand.
- Use SEO for your turnkey CBD business – it’s free if you do it by yourself, but you need to do it consistently and for quite a long time to achieve results but the bonus of it compared to advertisement is that it’s free of charge.
- Use social media. If you don’t have a big budget, we recommend doing it by yourself first.
- Reach out to your supplier and ask for other ways to market products. Good CBD suppliers are experienced and they can give good recommendations.
The key to marketing is being creative – find out where your target audience is and how to approach them. Invent new marketing methods no one is using in your industry and you’ll certainly be successful.
Choosing a platform for your CBD website, supplier, registering a payment processor and the overall set-up is pretty easy. We have a turnkey service for that which covers all the digital and technical aspects so you’ll have no website hassle at all. We even include on-going maintenance and a CBD hosting service.
The main part you’ll need to concentrate on is the business itself and marketing. Think of what is important to make sales and profit and we’ll cover all the rest for almost no cost.
We wish you all the best in your endeavours!